Which categories are non value added activities?

Q: How is a gain contingency reported?

A: Gain contingencies: The excess of book value over the amount to be received is actually gain…

Q: Explain the Service Projects versus Revenue Projects?

A: The project is the collaborative effort initiated to achieve a certain objective within a certain…

Q: What is meant by the phrase management by exception?

A:

Q: How do adjustments and preferences affect AMTI?

A: AMTI refers to alternative minimum taxable income. The AMT was made effective and implemented with…

Q: What is asset

A: Assets are those items that provide value for money and future economic benefit for an organization.…

Q: What is fundamental value or price?

A: Fundamental value is a measure of what an asset's worth. This gauge is acquired by methods for an…

Q: What is a component cost?

A: The most granular description of element costs is the cost components.  Types of cost components are…

Q: Define the term Fair Value Hierarchy.

A: Fair value: A value which is determined based on the market situation, business demand, and the…

Q: What is a contra-asset? Give an example of one.

A:

Q: What is meant by the term activity analysis? Give three criteria for determining whether an activity…

A: Activity analysis: It is the complete classification and description of the activities performed in…

Q: Distinguish between a joint product and a byproduct ?

A: Explain the difference between a joint product and a by-product. When the production process of the…

Q: How do fixed asset systems differ from purchases systems?

A: Definition: Purchase system: The identification and procurement of the inventory needs for the…

Q: Is advertising a program expense?

A: Advertising is treated as expense when it is incurred by the entity or organization for making the…

Q: what is materiality?

A: Materiality is an accounting concept that signifies the importance of an item to users of financial…

Q: How suboptimization can occur?

A: Sub-optimisation:   It refers to the level of output that can arise from any inefficient or…

Q: Why is there a need to segregate key functions in the expenditure cycle?

A: Expenditure cycle is the time and activities involved in procurement of goods and services and…

Q: What is the difference between historical cost accounting and fair value accounting?

A: Historical cost accounting records assets and liabilities at their original purchase cost, adjusted…

Q: Explain how the fair value method is an improvement over the intrinsic value method.

A: There are two methods to account for the Compensatory stock option plans. They are: (1) Fair value…